Redfin (NASDAQ:RDFN) Shares Gap Up – Here’s Why

Redfin Co. (NASDAQ:RDFN) shares gapped up prior to trading on Wednesday . The stock had previously closed at $7.37, but opened at $7.91. Redfin shares last traded at $8.06, with a volume of 1,662,460 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. Susquehanna increased their target price on shares of Redfin from $7.00 to $10.00 and gave the company a “neutral” rating in a research report on Monday, November 11th. Jefferies Financial Group increased their target price on shares of Redfin from $7.50 to $11.50 and gave the company a “hold” rating in a research report on Tuesday, October 22nd. Citigroup decreased their target price on shares of Redfin from $10.50 to $9.00 and set a “neutral” rating for the company in a research report on Friday, January 3rd. B. Riley increased their target price on shares of Redfin from $13.00 to $15.00 and gave the company a “buy” rating in a research report on Monday, September 30th. Finally, The Goldman Sachs Group lowered shares of Redfin from a “neutral” rating to a “sell” rating and raised their price objective for the company from $6.00 to $6.50 in a research report on Monday, November 18th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have issued a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $9.16.

Redfin Price Performance

The firm’s fifty day simple moving average is $8.76 and its 200 day simple moving average is $9.28. The company has a market capitalization of $959.61 million, a price-to-earnings ratio of -6.05 and a beta of 2.64.

Redfin (NASDAQ:RDFN) last announced its earnings results on Thursday, November 7th. The company reported ($0.28) EPS for the quarter, missing the consensus estimate of ($0.20) by ($0.08). The business had revenue of $278.02 million for the quarter, compared to the consensus estimate of $280.21 million. During the same period last year, the firm posted ($0.17) EPS. Equities research analysts forecast that Redfin Co. will post -1.25 earnings per share for the current fiscal year.

Insider Transactions at Redfin

In related news, insider Anthony Ray Kappus sold 8,417 shares of the firm’s stock in a transaction that occurred on Friday, November 22nd. The shares were sold at an average price of $8.43, for a total transaction of $70,955.31. Following the transaction, the insider now owns 29,978 shares of the company’s stock, valued at approximately $252,714.54. This trade represents a 21.92 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Christian John Taubman sold 16,333 shares of the firm’s stock in a transaction that occurred on Monday, December 23rd. The shares were sold at an average price of $8.44, for a total transaction of $137,850.52. Following the transaction, the insider now directly owns 73,466 shares in the company, valued at approximately $620,053.04. The trade was a 18.19 % decrease in their position. The disclosure for this sale can be found here. 4.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Redfin

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Hennessy Advisors Inc. bought a new position in Redfin during the fourth quarter valued at approximately $40,109,000. Geode Capital Management LLC raised its position in Redfin by 2.2% during the third quarter. Geode Capital Management LLC now owns 3,022,948 shares of the company’s stock valued at $37,884,000 after acquiring an additional 66,018 shares in the last quarter. Two Sigma Advisers LP raised its position in shares of Redfin by 124.9% in the third quarter. Two Sigma Advisers LP now owns 2,149,900 shares of the company’s stock valued at $26,938,000 after purchasing an additional 1,193,900 shares during the period. Assenagon Asset Management S.A. raised its position in shares of Redfin by 210.7% in the third quarter. Assenagon Asset Management S.A. now owns 1,092,371 shares of the company’s stock valued at $13,687,000 after purchasing an additional 740,759 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its position in shares of Redfin by 10.2% in the third quarter. Charles Schwab Investment Management Inc. now owns 998,284 shares of the company’s stock valued at $12,508,000 after purchasing an additional 92,023 shares during the period. Institutional investors own 61.07% of the company’s stock.

About Redfin

Redfin Corporation operates as a residential real estate brokerage company in the United States and Canada. The company operates an online real estate marketplace and provides real estate services, including assisting individuals in the purchase or sell of home. It also provides title and settlement services; and originates and sells mortgages.